A recent decision of the Ontario Superior Court of Justice
(Commercial List) (the "Court") in the
receivership proceedings of The Clover on Yonge Inc.1
(the "Clover Project") has addressed the
question of whether a debtor in receivership can avoid a sales
process by redeeming its outstanding debt.
Three high-rise condominium projects were assigned into
receivership in late March, 2020 by their lenders, BCIMC
Construction Fund Corporation and BCIMC Specialty Fund Corporation
(together, "BCIMC"). Each condominium
project was owned by a single purpose, project specific general
partner on behalf of a limited partnership.
The Receiver of the projects brought a motion in June to approve
a sale and investor solicitation process
("SISP") for each of the projects. The
SISP was approved for two of the three projects. The Receiver's
SISP proposal for the Clover Project was opposed by several parties
as a result of a separate proposal by Concord Land Developments
Limited ("Co
